GREAT LAKES Region

Regional Composite

REGIONALDATA REPORT

JAN – MAR2015 vs. 2014

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Methodology

• IRI gathers chain-wide sales across all RMAs (Retail Market Areas)– Regional Composite Reports reflect multi-outlet retail data. Multi-outlet reporting

includes an aggregation of the following channels: grocery, mass, club, drug, dollar and military

• Average Selling Price (ASP) is not Advertised Retail Price– Average selling price is the average of all prices including coupons, promotional

pricing, club/loyalty card deals that are given at the register at the time of purchase

• Categories:– Avocados– Total Produce: Includes avocados

• Timeframe: YTD Q1 (January – March) 2015

• Retail data provided by IRI / FreshLook Marketing

• Important Note: IRI / FreshLook Marketing periodically restates retail data, therefore this review cannot be compared or used in conjunction with prior reviews

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Great Lakes Region: Highlights - YTD Q1

• Overview based on the following geography:– The Great Lakes Region captures the Markets of Chicago, Cincinnati, Cleveland,

Columbus, Detroit, Grand Rapids and Indianapolis, plus additional cities not included in Markets

• 2015 vs. 2014, avocado dollars in Great Lakes grew +16% and outpaced Total U.S. (+12%) by +4 points– Avocado dollars outpaced total produce (+2%) by +14 points– During the same time, category volume grew +23%– Category average selling price (ASP) decreased -5% to $1.07/unit– Great Lakes Large Hass avocados (4225) drove category dollar growth, adding +

$3.7MM– Great Lakes large Hass avocado (4225) gain of +16% was +12 points ahead of the

national average

• Great Lakes posted the lowest dollars and second lowest units per store per week– Great Lakes averaged $65 and 61 units per store per week through Q1 2015

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Great Lakes: YTD Q1 - Avocados vs. Total Produce

• 2015 vs. 2014, avocado dollars grew +16%, +14 points ahead of total produce (+2%)

• Great Lakes held a 13% share of total produce dollars and a 10% share of avocado dollars

Avocados Outpaced Total Produce in Retail Dollar Sales Growth Rate

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Great Lakes: YTD Q1 Avocado Retail Overview

• 2015 vs. 2014, Category dollars grew +16%, while volume grew +23%– Avocados posted double-digit growth in

dollars and volume for two consecutive years

• 2015 vs. 2014, Category average selling price (ASP) decreased -5% to $1.07/unit

Avocados Posted Double-Digit Growth in Dollars and Volume for Two Consecutive Years

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RETAIL DOLLARS

PLU Description 2014 2015 Variance 2014 2015 Variance

4046 Small Hass #60 sizes & smaller 6,261,180$ 6,014,453$ -3.9% 97,961,968$ 137,070,146$ +18.4%

4225 Large Hass #40 & #48 sizes 23,554,558$ 27,278,633$ +15.8% 158,443,718$ 201,162,247$ +3.8%

4770 X-Large Hass #36 sizes & larger 4,014,179$ 5,441,506$ +35.6% 11,943,448$ 21,547,506$ -8.0%

Other Greenskins, Pinkertons, non-Hass PLUs 636,601$ 572,826$ -10.0% 13,267,683$ 16,377,059$ +5.9%

Organic All Organic PLUs 925,527$ 1,087,537$ +17.5% 5,825,981$ 10,795,377$ +38.8%

Bags All bagged PLUs 5,259,030$ 6,922,064$ +31.6% 43,496,827$ 67,902,177$ +38.2%

40,651,075$ 47,317,019$ +16.4% 330,939,624$ 454,854,511$ +12.1%

RETAIL UNITS

PLU Description 2014 2015 Variance 2014 2015 Variance

4046 Small Hass #60 sizes & smaller 6,031,635 6,013,450 -0.3% 115,800,731 173,726,357 +6.2%

4225 Large Hass #40 & #48 sizes 19,274,384 23,774,111 +23.3% 125,720,805 165,206,707 -2.6%

4770 X-Large Hass #36 sizes & larger 2,861,815 4,048,475 +41.5% 6,981,647 12,219,114 -27.2%

Other Greenskins, Pinkertons, non-Hass PLUs 345,471 337,104 -2.4% 7,394,686 9,129,268 +4.9%

Organic All Organic PLUs 570,672 634,333 +11.2% 3,661,298 7,189,914 +31.4%

Bags All bagged PLUs 6,879,140 9,413,576 +36.8% 48,792,912 74,216,797 +30.4%

35,963,117 44,221,049 +23.0% 308,352,080 441,688,156 +4.9%

AVERAGE SELLING PRICE (ASP) / UNIT

PLU Description 2014 2015 Variance 2014 2015 Variance

4046 Small Hass #60 sizes & smaller $1.04 $1.00 -3.7% $0.85 $0.79 -6.7%

4225 Large Hass #40 & #48 sizes $1.22 $1.15 -6.1% $1.26 $1.22 -3.4%

4770 X-Large Hass #36 sizes & larger $1.40 $1.34 -4.2% $1.71 $1.76 +3.1%

Other Greenskins, Pinkertons, non-Hass PLUs $1.84 $1.70 -7.8% $1.79 $1.79 -0.0%

Organic All Organic PLUs $1.62 $1.71 +5.7% $1.59 $1.50 -5.6%

Bags All bagged PLUs $0.76 $0.74 -3.8% $0.89 $0.91 +2.6%

$1.13 $1.07 -5.3% $1.07 $1.03 -4.0%

TOTAL CATEGORY UNITS

Total U.S.Great Lakes

JAN

UA

RY -

MA

RCH

: 201

4 vs

201

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CATEGORY ASP ($/Unit)

Total U.S.Great Lakes

TOTAL CATEGORY DOLLARS

Total U.S.Great Lakes

Great Lakes vs. Total U.S. - YTD Q1 PLU Comparisons

• Avocado dollar sales in GL increased +16%, +4 points ahead of Total U.S. (+12%)

– Volume increased +23%, +18 points ahead of Total U.S.

• GL large Hass avocados (4225) drove dollar gains and grew +16%, +12 points ahead of the national average

– Large avocados held the largest dollar share in GL and Total U.S.

• GL category ASP of $1.07/unit was +4% higher than the national average

Great Lakes Outpaced Total U.S. in Dollar and Volume Growth Rates

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Great Lakes: YTD Q1 Category Per Store Per Week Averages

• Great Lakes had the slowest dollar velocity– Great Lakes

averaged $65 per store per week through Q1 2015

• Great Lakes had the second slowest unit velocity– Great Lakes

averaged 61 units per store per week through Q1 2015

Lower Dollars and Units Per Store Per Week in Great Lakes Presents Opportunity for Growth

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Great Lakes: 2013-Q1 through 2015-Q1Units vs. ASP

• Retail Units– The peak quarter was 2015-Q1 at 44MM units when ASP was $1.07/unit– The lowest quarter was 2013-Q4 at 24MM units when ASP was at $1.27/unit

• ASP– Lowest ASP to date occurred during 2013-Q1, $1.02/unit– Highest ASP to date occurred during 2014-Q2 at $1.28/unit